MR was looking to sell his portfolio of 137 units in Cincinnati, OH, which was spread across five Class C properties.

He found a buyer who wanted to manage the property for a few months before closing to ensure full stabilization.  

There were renovations to take care of, violations to clear, tenants to evict and some basic CapEx work for the exterior and common areas.

— He needed an unbiased third party

MR was too involved in the transaction. He needed  a third party company to give their unbiased opinions and assistance and:

• Help negotiate the deal structure and set the goals to reach before closing
• Lay out who would be financially responsible for each renovation/CapEx item
• Stay on as asset managers until closing to make sure that the goals were progressing smoothly

— Negotiated and took over as asset managers

Our asset management team was experienced in Cincinnati and got started on this. We:

• Helped liaise between the parties to set up the terms for the pre-closing period
• Visited the property multiple times to assess what renovations needed to be done
• Divided out the renovation financial responsibilities between the two parties

And then once everything was negotiated we:

• Set up weekly calls with management/buyer to monitor their goal progress
• Approved all renovation invoices to make sure that the work stayed within the pre-arranged budget
• Constantly reviewed the financials to make sure the property was running smoothly

— Closing after 10 months

The work that needed to be done wrapped up.

And both parties went to a smooth closing 10 months post the buyer’s takeover.

All in all — Negotiation + Oversight + Closing